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Can you afford not to adopt these technologies?

Can you afford not to adopt these technologies?

6 minute read

Much has been written about the leading 10 disruptive technologies that are expected to generate trillions of dollars in economic value in the decade ahead. Panasonic is deeply engaged in most of these technologies.

We believe that shaping them into integrated solutions is the key to creating entirely new experiences. But how do Chief Technology Officers (CTOs) and other senior decision makers view these technologies? Which do they intend to adopt? And what are the barriers to adoption?

To find the answers, Panasonic Corporation of North America recently commissioned a research series, Moving Forward, on how disruptive technologies are impacting businesses, government agencies and entire industries. We’re pleased to be able to share some of our findings with you now.

Study: Adoption of 10 disruptive technologies by industry

Already adopted

Intend to adopt

Critical to future success

3-D printing

45%

Advanced
materials

44%

Artificial
intelligence

47%

Autonomous
vehicles

20%

Cloud

80%

Energy storage

43%

Internet
of Things

74%

Mobile devices,
apps and
commerce

80%

Robotics

52%

Renewable energy

58%

Disruptive technologies are drawing investment

Our study shows that many companies have made investments already. Breaking it down by technology, more than four in five have adopted mobile devices, apps and commerce and the cloud, and three in five have adopted the Internet of Things (IoT). Senior tech decision makers believe these three technologies are most critical to their future success.

But interest is strong in all 10 disruptive technologies, with one-third of companies planning to use seven or more in the near future. Renewable energy, robotics, artificial intelligence (AI), 3-D printing, advanced materials and energy storage are each expected to be a near-term investment for two in five companies. One in five plans to invest in autonomous vehicles.

Failure to adopt disruptive technologies is risky

Senior decision makers clearly understand the risk in failing to adopt disruptive technologies. Across the board, they realize that their businesses could be hit hard if they do not embrace them.

Nearly four in five believe industry competitors will pull ahead if they do not adopt or invest in these technologies.

Seven in 10 are concerned competitors outside their industry could disrupt them.

And these decision makers see a wide range of consequences, from falling revenue to unsustainable pricing to an inability to meet consumer demand.

Our net, net: disruptive technologies are not a nice-to-have – they’ve become the price of doing business…and staying in business.

The biggest barriers to adoption

Topping the list of obstacles are complying with government regulations and consumer privacy/security. A lack of skilled employees and lack of expertise for effective implementation are also major concerns. In fact, half of the companies surveyed believe they might need a partner to guide them on how best to adopt and integrate these technologies into their business.

That need for guidance rings true with our own experience here at Panasonic. With our wide range of expertise, Panasonic is uniquely skilled at bringing together these technologies. We’ve seen more and more companies reach out to our technology and industry leaders, seeking our expertise in how to integrate these technologies into the products and experiences they’re developing for the consumer of tomorrow.

What's next in our Moving Forward series?

In the weeks and months ahead, we’ll be taking deeper dives into this research, with the goal of increasing understanding of how disruptive technologies are impacting Sustainable Energy and Integrated Supply Chain solutions. Stay tuned.

About the research

This research was commissioned by Panasonic Corporation of North America and fielded from December 4, 2017–January 30, 2018 in the U.S. and Canada. The survey included 200 CTOs and other senior technology decision makers in organizations with at least 200 employees.

Tech decision makers become early adopters. Here’s why.

Tech decision makers become early adopters. Here’s why.

6 minutes

By 2025, 10 disruptive technologies are expected to generate trillions of dollars of economic impact. As a leader in these technologies, Panasonic Corporation of North America decided to delve deeper into this massive economic opportunity, and how it’s impacting the way businesses think about technology adoption.

In this sixth article from the Moving Forward research series, we summarize some of the key findings from our surveys of 400 senior technology decision makers across 13 industries in North America. We take a closer look at their view of various disruptive technologies, as well as their current and future plans for adoption.

Our study reveals that adopting disruptive technology is now seen as a necessity, causing two of three businesses today to think and behave like “early adopters.”

The mainstreaming of the “early adopter” mindset

Technology is no longer just a useful tool to efficiently manage operations. It’s become fundamental to the way companies create value and is increasingly integrated into core offerings.

Our research identified a number of strategic challenges that arise from delaying investment in disruptive technologies. Nearly two in three businesses see a risk in competitors pulling ahead. And one in two believe they could be impacted by falling revenue, the failure of products and services, and loss of market relevance.

For all these reasons, nearly two in three have embraced a classic “early adopter” mindset. While they may have concerns about a weaker ROI from adopting too soon, they believe the bigger risk is adopting too late, leading to a weaker competitive position.

Cloud, mobility and IoT most critical

Enthusiasm for disruptive technologies has already translated into decisive action. On average, organizations have adopted four of 10 disruptive technologies, with nearly half adopting five or more, and one in five adopting seven or more.

When decision makers were asked to identify the disruptive technologies most critical to their companies’ future success, three stood out:

Cloud: 77% of businesses surveyed have already adopted it, and that number is expected to increase to 87% in the near future

Mobility: 75% have adopted mobile devices, apps and commerce, increasing to 88% in the near future

Internet of Things: 61% have adopted IoT, increasing to 79% in the near future

Artificial intelligence: the emerging “must-have” technology Yes, only two in five companies have adopted AI. But the same number believe it will be one of the three most critical technologies for their business moving forward. And adoption is expected to grow by more than 50% in the near future. Industries where we expect to see significant growth in artificial intelligence include:

Industry

Adoption in near future

Retail

83%

Sports, Entertainment and Media

75%

Technology and Telecom

74%

Automotive

73%

Aviation

67%

Government and Public Safety

62%

As one retail executive stated, “It will be a huge game changer for whoever can use it most efficiently."

Robotics, energy storage and 3-D printing: demand accelerates

Three technologies stand poised for rapid growth, as evidenced by the gap between current and future adoption.

Driven by strong interest from manufacturing, automotive, education and retail, robotics adoption will grow +24 points overall to 61% adoption in the near future. 3-D printing adoption will also grow +24 points to 56% adoption, thanks to bullishness from education, aviation and manufacturing, plus sports, entertainment and media.

Following close behind is energy storage adoption. It’s projected to double in automotive, where it will play a central role in the shift to electric vehicles. (Panasonic is leading this transformation through strategic partnerships with Tesla and Toyota, among others.) Energy storage will also double in retail, government and public safety, building and construction, and logistics. In addition, almost two in three organizations believe battery storage of solar and wind energy will be mainstream within 10 years.

Renewable energy: three in five to adopt

At least half of the companies in 11 of 13 industries surveyed expect to adopt renewable energy. Overall, adoption will increase from 44% today to 60% in the near future.

One of the big drivers in the future could be net-zero energy building codes, which require residential and commercial buildings to produce their own electric energy. Seven in 10 organizations surveyed expressed interest in adopting technologies that create carbon-neutral or net-zero energy buildings.

How businesses view disruptive technology adoption

Overcoming obstacles to change

Of course, progress doesn’t come without some setbacks along the way. A full 35% of organizations cited lack of expertise as a major challenge in effectively implementing disruptive technologies. And, in certain industries, more than a third of respondents lamented the lack of a partner with the necessary knowledge.

As a company with a innovation heritage and leadership in these technologies, Panasonic is uniquely positioned to help. Across key industries we are working with customers to help them embrace the changes that these technologies bring and enable them to evolve and enable their businesses. And we look forward to helping more customers create advantages for their businesses and customers in this digital future.

About the research

This researched was commissioned by Panasonic Corporation of North America and fielded in the U.S. and Canada. The survey included 400 CTOs and other senior technology decision makers in organizations with at least 200 employees.

Reinventing the customer experience, from store to stadium

Reinventing the customer experience, from store to stadium

Increasingly, consumers are defaulting to online experiences for shopping, sports and entertainment events, even learning. Organizations that have invested in physical venues to attract shoppers, fans, entertainment seekers and students are now convinced they need to step up their game to compete. Today, these Immersive Experience organizations are enhancing physical spaces with digital information, adopting a wide range of disruptive technologies in the process. And that adoption will only accelerate.

In this fifth article in the Moving Forward research series, Panasonic Corporation of North America assesses how senior technology decision makers view the technologies driving us forward and their impact on customer experience in industries like Retail, Education, and Sports, Media and Entertainment.

By 2025, 10 disruptive technologies are expected to generate trillions of dollars of economic impact. Our new study reveals that Immersive Experience industries have already adopted just under five of these technologies on average. And four technologies appear to be at the top of their innovation agendas – artificial intelligence, robotics, 3-D printing and energy storage. Panasonic is deeply engaged in each of them.

How organizations see digital tech enhancing physical spaces

Artificial Intelligence: a critical technology

Along with the cloud, artificial intelligence (AI) is seen as the technology most critical to the future success of experience-oriented organizations. Four in five have either adopted or plan to adopt AI in the near future. Why? It will enable them to enhance the customer experience through:

Better customer insights and new products based on those insights

Better ability to predict customer behavior and the operational advantages this foresight enables

The opportunity to design for customers in a more seamless, personalized way

Personalization vs. privacy

While organizations (especially retailers) see the importance of personalizing content – in part through insights from AI – they also see the need to strike a balance between personalization and privacy. When asked to choose between protecting consumer privacy and using consumer data to develop better products, slightly over half prioritize privacy.

In fact, consumer privacy/security concerns are the biggest obstacle overall to adoption of disruptive technologies, ahead of stagnant budgets, lack of skilled employees and government regulation.

Three technologies poised for growth

In addition to AI, a trio of technologies – robotics, 3-D printing and energy storage – also have great potential in Immersive Experience industries. Each shows a gap of around 30 points between current and near-future adoption, indicating strong opportunities for technology solution providers in these areas.

Intent to adopt varies among industries. Retailers expressed strong interest in robotics and energy storage. Educators also have robotics on their tech adoption shopping list, along with 3-D printing.

9 in 10 customer experience-oriented
organizations expect to invest in advanced
display technologies within three years.

Combining physical and digital worlds a near-unanimous priority

If there’s one area where almost everyone sees potential, it’s enriching physical environments with digital information. An overwhelming 19 of 20 organizations focused on customer experience believe it’s important.

Retailers especially see this capability as a must-have, with seven in 10 considering it very important. They identified a number of game-changing benefits, including:

Visualizing merchandise as it would appear in real life through applications like digital mirrors and digital space design

Securely dropping off and picking up merchandise for servicing after hours

Purchasing merchandise at the point of display, eliminating the need for checkout

Digital’s impact on live events

Sports, media and entertainment organizations think integrating digital and physical worlds can get customers off the couch and into their venues. They envision an enhanced experience that may include:

Previewing and pre-purchasing merchandise, food and beverages, and premium services prior to arrival

Providing turn-by-turn wayfinding directions in the venue

Allowing access to behind-the-scenes data and information that enriches their audience’s perspective, such as augmented reality projections of player stats

Panasonic recently brought a lot of this technology together in the Atlanta Braves’ new baseball stadium, SunTrust Park.

Advanced displays are key to immersive experiences

To bring immersive experiences to life, nine in 10 customer experience-oriented organizations expect to invest in advanced display technologies within three years. The most interesting of these, in their view, is a display that projects not only images but information. Panasonic’s LinkRay solution uses visible light to transmit content to mobile devices and has been embedded in mobile apps for venues like the iconic Petersen Automotive Museum in Los Angeles.

Embracing disruption is essential

Many customer experience-oriented organizations have already experienced the disruption of e-commerce retailers and media streaming services. Not surprisingly, six in seven agree that “embracing disruptive technologies is not a ‘nice to have.’ It’s the price of doing business – and staying in business.”

A large number of these organizations realize they need a strategic partner to get the most out of disruptive technologies. As partner to many of the world’s best entertainment experience organizations, including Walt Disney Parks and Resorts and the Olympic Games, Panasonic can be a great resource for those looking to bring together our digital and physical worlds.

About the research

This research was commissioned by Panasonic Corporation of North America and fielded in the U.S. and Canada. The survey included 100 CTOs and other senior technology decision makers in organizations with at least 200 employees.